If STRC drops below $100, Strategy can no longer issue new STRC shares. And that is exactly how they normally buy Bitcoin. Now that this is no longer possible, the “Bitcoin engine” grinds to a halt.
Strategy used part of its dollar reserves to pay off $1.5 billion in debt, causing the buffer to drop from $2.25 billion to $1.1 billion. That makes investors nervous. The buffer is intended to pay dividends and is costly.